Supplier's Credit

Facility for Arranging Funds for Importers Using Letter Of Credit

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    Why You Need Supplier’s Credit Service?

    Myforexeye has created and pioneered an international trade finance consulting service called supplier's credit, which assists importers by offering trade finance at rates tied to LIBOR in exchange for the use of a letter of credit. The importer gains more negotiating power with the provider because they receive payment on sight.

    To finance your import payments, obtain quotes on supplier's credit from 99+ partner banks.
    To provide quick and easy funding, we obtain the lowest rate within an hour from more than 100 institutions.
    To lower the credit risk and ease the short-term pressure on funds by allowing importers to trade on credit.

    Process Flow

    Advantages of Supplier's Credit

    Instant Quotes
    Low Arrangement Fees
    Most Economical
    Forex Management

    Salient Features

    Get attractive quotes for Buyer's Credit from 99+ banks.

    Reduce price discovery timelines significantly.

    Eliminte unnecessary bargaining and negotiations with multiple brokers/banks.

    Frequently Asked Questions

    Supplier's credit is a facility of arranging funds for importers using bank risk (keeping LC as an underlying asset). This credit facility is extended to importers for imports into India by overseas suppliers or Financial Institutions. Letter of Credit issued by Indian Banks under Usance bills on behalf of their importers are discounted at SOFR linked rates by Indian bank branches situated overseas or Foreign Banks.
    No, you must obtain a credit facility (Non-Fund - Based Credit Limits) with your bank before availing Supplier's credit
    Following are the key steps involved in the process of supplier's credit:

    1. Prior to LC opening client shares details with Myforexeye

    2. Myforexeye identifies and offers best rates from off shore banks to client acceptance.

    3. Upon acceptance of rate by Client, Myforexeye notifies specific clauses to be incorporated in the LC.

    4. Client's LC issuing bank to open an LC.

    5. LC issuing bank opens and transmits the LC to off shore bank which in turn sends LC to beneficiary bank

    6. Exporter ships the goods to the client on intimation that the LC has been received by their bank.

    7. Exporter lodges the documents evidencing shipment of goods to their bank which forwards them to LC issuing bank via Off shore bank.

    8. Payment is made to the exporter by disbursing supplier's credit post acceptance from LC issuing bank prior to funding.

    9. On due date, principal plus interest recovered from client remitted by LC issuing bank to offshore bank.
    Following is the list of Documents Required
    A. Request Letter giving complete import details and along with Acceptance of negotiation charges.
    B. Offer Letter from overseas Bank (If Required)
    C. Letter of Credit to contain clauses facilitating disbursement of Supplier's Credit + outlining the process/ pricing etc.
    D. DNB/Credit/KYC reports of buyer and supplier.
    This is charged by overseas bank as a financing cost. Normally it is quoted as say "3M SOFR + 50 bps p.a.", where 3M is 3 Month, SOFR is Secured Overnite Financing Rate & bps is Basis Points (A unit that is equal to 1/100th of 1%). One should also check on what tenure SOFR is used, as depending on tenure SOFR will change. For example, as on July 2023, 3 months SOFR is 5.31% p.a. and 6 months SOFR is 5.39% p.a.
    Letter of Credit: Importer's Bank will charge this cost for issuing Letter of Credit which ranges in (typically 0.25% - 1.0% p.a.)
    Negotiation Charges: This is charged by Funding Bank for Negotiation/Handling/Postages.
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    Have more questions?

    You can always contact us if you can't find your solution in our FAQ section. We will respond to you soon!

    What Clients Says

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    We are associated with Myforexeye since 2014, they have been consulting us on our forex exposures and also reforming our hedging strategies. They have been looking after our treasury managemnt effeciently.

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    We have large dollar exports and managing forex risk is critical for our overall business profitability. We have collaborated with Myforexeye for forex market intelligence and insights to take prudent and informed decisions.

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    Myforexeye significantly reduced our trade finance costs to less than half of our previous bank payments, demonstrating their effectiveness in optimizing financial strategies and expenses.

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    We have been using the services of Myforexeye for the last 2 years. Their currency market predictions and analysis are mostly accurate.

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    My experience with them has been nothing short of exceptional. If you're in search of reliable and efficient forex services. Myforexeye is the perfect choice.

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    We’ve used Myforexeye for 7+ years and are very satisfied with your prompt forex insights and market updates. Your quick calls after major global news and the Myforexeye app keep me fully informed—anywhere, anytime.

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    What We Have Achieved Till Now

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    Total Transactions

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    No. of Clients Served

    We are regulated

    SEBI Registration

    Registered Investment Advisor(RIA)

    NISM-202100075147

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    Sub-Broker

    AP0091502703

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    CIN

    U65910DL2014PTC320897

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